The debt ceiling deal shifted the focus to the possibility of a Fed rate hike
The markets responded favorably to the announcement of the an agreement between President Biden and Speaker McCarthy to raise the US debt ceiling and avoid a default. While there could still be a hectic week ahead as Congress rushes to complete the legislation to put it into law by the 5 June X Date, The focus of investors is changing.
They will be keeping an eye on new US economic data reports to be released this week, primarily the May 2023 Job Openings and Labor Turnover Survey (JOLTS) to be released on Friday 2 June. According to a Reuters survey experts forecast 180,000 new jobs were added in May. That’s down from 253,000 last month, but will still show strong growth in the US labor market.
Added to the Commerce Department’s better-than-expected GDP and PCE inflation numbers Wall Street has already started to price in another rate hike by the Federal Reserve. According to the CME FedWatch Tool, futures traders Sent the possibility of a 25-basis point hike from just under 26% to over 64%.
